The Tesla Inc CEO, Elon Musk, and the entire company were found not guilty by a jury in the United States. In which, roughly two hours after deliberation, a unanimous verdict was issued, stating that the said businessman and his empire were not liable for “misleading investors” through a tweet by Musk in the year 2018.
The Tesla CEO allegedly claimed in the said tweet that he already had “funding secured” to take the electric car company private. According to reports, the plaintiffs sought billions of dollars in damages. On the other hand, the decision has been significant for Musk himself, who uses Twitter to share his thoughts the majority of the time.
Elon Musk’s Reaction on the Final Verdict
Elon Musk was reportedly not physically present in court when the jury’s decision was announced, but the businessman immediately took to Twitter to express his “deep appreciation” for the jury’s decision. The decision aided Tesla’s stock, which rose 1.6% in after-hours trading following the decision.
The businessman went on to say, “Thank goodness, the wisdom of the people has prevailed.” The lawyer for the investors, Nicholas Porritt, expressed his and his clients’ disappointment with the jury’s decision. He went on to say that they are now considering various options for their next step.
Wedbush analyst Dan Ives stated that if the decision had gone the other way, Tesla may have lost more investors, but he also stated that that “dark chapter” has already ended for both Musk and Tesla.
Elon Musk and Tesla’s legal and regulatory problems were allegedly caused by an impulsive tweet by the businessman himself, Elon Musk.
He now owns the aforementioned social media platform, which he purchased for $44 billion last October.
Lawyer’s Thoughts on the Case
Mino Myers, a university corporate law professor, initially thought the investors’ case was strong but now calls the outcome “astonishing,” adding that anti-securities fraud law in the United States has always been very open in its fight against misstatements and falsehoods.
The law professor then stated that he is unsure “if it is up to the job in modern markets,” and that there is a good chance that Musk will “double down” on his communication tactics following the verdict. The businessman’s attention has recently been divided between Tesla, SpaceX, and Twitter.
Many Tesla investors have already expressed their concerns that running a social media platform would consume a significant amount of the businessman’s time and attention.